US President Joe Biden and Canadian Prime Minister Justin Trudeau will announce the deal during Mr. Biden’s visit to Ottawa on Friday.
The agreement is expected to allow US and Canadian authorities to turn away asylum seekers from both countries.
The new regulation will close a loophole in the Safe Third Country Agreement that prevents Canada from turning back crossings at unofficial crossing points.
The gap had caused immigrants to enter Canada from places like Roxham Road.
Negotiations on the new US-Canada border deal had stalled for months, according to reports.
U.S. officials reportedly did not want to reshuffle the deal as the country grappled with its own immigration crisis on the U.S.-Mexico border.
As part of the deal, Canada will create a new refugee program for 15,000 migrants fleeing persecution and violence in South and Central America, according to the news in CBS News.
Biden is in Ottawa, Canada, for 24 hours to discuss with Trudeau on a range of economics, trade and immigration issues.
The immigration deal is scheduled to be announced on Friday before Biden returns to the US.